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HUAYU Automotive Systems Co Ltd (600741) Fair Value & Analysis

Consumer Cyclical · CN · Market cap 50.4B CNY

HA HUAYU Automotive Systems Co Ltd 600741 · SHG
Price¥15.48
Fair Value¥45.98
Upside+197.0%
Quality54/100
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Strengths

Trades 66% below our fair value of ¥45.98
Healthy Growth (revenue 5y +6.6 %/yr)
Low debt · generates free cash flow
Ranks above peers (10/14)

Risks

!Thin margins · 3.9% net margin
!Narrow moat 36/100
Healthy Growth (revenue 5y +6.6 %/yr)
Thin margins · 3.9% net margin
Low debt · generates free cash flow
6.25% dividend yield
Ranks above peers (10/14)
Narrow moat 36/100
Evidence: High Range ¥35.85 – ¥56.12 Share as image

Fair value as of: Aug 16, 2026

From 26 valuation models · updated 9 days ago

Share price −5.2% over the past month.

A solid business, trading 66% below our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price is below even our cautious bear case (¥35.85). The market is more pessimistic than our downside scenario.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

¥27.36 ¥13.30 Fair Value ¥45.98 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 16, 2026.

How to read this chart

60‑month range ¥13.30 – ¥27.36 · fair‑value band ¥35.85 – ¥56.12 · the ¥15.48 price screens below the ¥45.98 fair value. Dashed = 300-day average. As of Aug 16, 2026.

Full chart & analysis →

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Analysis

HUAYU Automotive Systems Co Ltd (600741) currently trades at ¥15.48, while our model-based Fair Value estimate is ¥45.98, implying the stock looks roughly 197.0% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, HUAYU Automotive Systems Co Ltd generated revenue of 184B CNY at a net margin of 3.9%. Revenue declined 1.0% year over year. It earns a return on equity of 11.6%. The balance sheet holds a net cash position of 17.2B CNY. Fundamentals as of Aug 16, 2026

Our scenario range runs from ¥35.85 (bear case) to ¥56.12 (bull case); at ¥15.48, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 28% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at 197%, 600741 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ¥33.73 ¥56.03 ¥97.68 80
Residual Income ¥19.12 ¥21.60 ¥37.29 76
Rev-Margin DCF ¥33.36 ¥54.40 ¥85.31 74
All 26 models by family
DCF Models
FCF DCF ¥34.69 ¥51.55 ¥98.06 38
Owner Earnings ¥53.91 ¥105.54 ¥211.69 31
5Y Revenue Exit ¥33.36 ¥53.22 ¥88.45 39
5Y EBITDA Exit ¥44.61 ¥77.96 ¥133.53 41
5Y P/E Exit ¥44.31 ¥81.13 ¥128.16 38
10Y Revenue Exit ¥32.87 ¥55.34 ¥85.68 36
10Y EBITDA Exit ¥41.55 ¥76.04 ¥138.69 37
10Y P/E Exit ¥41.34 ¥75.48 ¥133.59 35
Earnings-Based
Graham-Dodd ¥15.55 ¥104.21 ¥145.99 54
Lynch FV ¥30.50 ¥43.57 ¥56.64 50
PEG = 1.0 ¥30.50 ¥43.57 ¥56.64 46
EPV ¥30.48 ¥33.65 ¥36.43 59
Dividend Discount
Gordon GGM ¥8.84 ¥18.37 ¥29.14 70
DDM Multi-Stage ¥8.84 ¥15.49 ¥19.28 61
Multiples
P/E Multiple ¥37.72 ¥50.29 ¥62.87 63
P/S Multiple ¥29.15 ¥38.86 ¥48.58 58
P/B Multiple ¥29.15 ¥38.86 ¥48.58 55
EV/EBIT ¥41.88 ¥52.01 ¥62.15 53
EV/EBITDA ¥49.63 ¥62.34 ¥75.06 54
EV/Revenue ¥31.97 ¥40.75 ¥49.53 43
Asset-Based
NCAV (Graham) ¥10.65 ¥14.27 ¥21.30 50
Growth DCF
Growth DCF ¥33.73 ¥56.03 ¥97.68 80
Rev-Margin DCF ¥33.36 ¥54.40 ¥85.31 74
Economic Profit
Residual Income ¥19.12 ¥21.60 ¥37.29 76
ROIC Compounder ¥35.01 ¥45.99 ¥60.63 72
Growth Earnings
Growth-Adj P/E ¥43.24 ¥61.77 ¥80.30 68

Widest divergence: DCF Models (¥75.48) versus Asset-Based (¥14.27). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/E ratio 6.8
P/S ratio 0.27 TTM
Dividend yield 6.3% payout 42.4%
Net margin 3.9% TTM
Return on equity 11.6% TTM
Return on assets 2.2% TTM
More key figures
Profitability
Operating margin 3.3% TTM
EPS (TTM) ¥2.28
Growth
Revenue (TTM) 184B CNY TTM
Revenue growth (YoY) -1.0% 3y avg +5.1%
EPS growth (YoY) -2.5%
Balance sheet & cash flow
Free cash flow 4.8B CNY FY2025
Net cash 17.2B CNY FY2024

Figures from reported company fundamentals · as of Aug 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 53 · Market factors (momentum, volatility) 40

Profitability 39
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 57
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 11
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

HUAYU Automotive Systems Company Limited researches and develops, manufactures, and sells automotive parts worldwide. The company offers advanced driving assist systems and autonomous driving systems; intelligent vision perception system solutions; Smart Cabins; e-drive solutions; thermal and battery management systems; chassis systems, such as suspension, …

Full company description

HUAYU Automotive Systems Company Limited researches and develops, manufactures, and sells automotive parts worldwide. The company offers advanced driving assist systems and autonomous driving systems; intelligent vision perception system solutions; Smart Cabins; e-drive solutions; thermal and battery management systems; chassis systems, such as suspension, steering, braking, and transmission systems; interior and exterior parts, seats, and passive safety systems; and automotive fuel systems. It also provides electronic cooling water pump, electronic vacuum pump, electronic vapour pump, variable oil pump and mechanical water pump, covering systems of thermal management, turbocharger cooling, battery cooling, oil supply cooling, exhaust gas recirculation cooling, canister purging, engine and transmission lubrication, cooling, and hydraulic drives. The company was formerly known as Shanghai Bus Industry (Group) Co., Ltd. and changed its name to HUAYU Automotive Systems Company Limited on April 20, 2009. HUAYU Automotive Systems Company Limited was founded in 1992 and is based in Shanghai, China. HUAYU Automotive Systems Company Limited is a subsidiary of SAIC Motor Corporation Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HUAYU Automotive Systems Co Ltd reported revenue of ¥184B in FY2025 versus ¥140B in FY2021, a compound +7.1%/yr. Reported net income was ¥7.2B in FY2025, compounding +2.7%/yr from FY2021.

Growth Quality 68/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
184B CNY
Latest YoY
+9.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.6%
Avg. revenue growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+29.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+8.2% (2.2 + 6.0)
Revenue +7.1%/yr
FY21 ¥140B
FY22 ¥158B
FY23 ¥169B
FY24 ¥169B
FY25 ¥184B
Net income +2.7%/yr
FY21 ¥6.5B
FY22 ¥7.2B
FY23 ¥7.2B
FY24 ¥6.7B
FY25 ¥7.2B
Character of growth · EPS growth decomposed (2013-2024) +3.1 % p.a.
Revenue per share +5.6 pp

of which total revenue +7.9 pp · buybacks/dilution −2.4 pp

EBIT margin −5.3 pp
Tax rate +0.6 pp
Residual (interest, one-offs) +2.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "HUAYU Automotive Systems Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/600741

Peer Group

Auto Parts · 646 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside +197% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 2% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth -1% · Below median
Dividend yield (TTM) 6.5% · Top 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 6.8× · Cheaper than 75% of peers
P/B 0.75× · Cheaper than 75% of peers
P/S (TTM) 0.28× · Cheaper than 75% of peers
P/FCF 1.6× · Cheaper than median
EV/EBITDA 1.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 17
FUTURE0 · sector 25
PAST46 · sector 28
HEALTH99 · sector 95
DIVIDEND100 · sector 31

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Magna International Inc MGA $69.71 $68.17 -2%
Genuine Parts Company GPC $131.89 $58.07 -56%
Samvardhana Motherson International Limited MOTHERSON ₹169.58 ₹80.63 -52%
Bosch Limited BOSCHLTD ₹48,700 ₹11,534 -76%
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Frequently asked questions

Is HUAYU Automotive Systems Co Ltd (600741) overvalued or undervalued?
As of Aug 16, 2026, our model estimates a fair value of ¥45.98 versus a price of ¥15.48, about +197% (undervalued).
What is the fair value of 600741?
Our model-based fair value for HUAYU Automotive Systems Co Ltd is ¥45.98 (as of Aug 16, 2026), built from audited fundamentals. The current price: ¥15.48.
What is the quality score of 600741?
HUAYU Automotive Systems Co Ltd has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of HUAYU Automotive Systems Co Ltd (600741)?
HUAYU Automotive Systems Co Ltd reported trailing-twelve-month revenue of about 184B CNY (latest available figure, as of Aug 16, 2026).
What is the net profit margin of 600741?
The net profit margin of HUAYU Automotive Systems Co Ltd is about 3.9%, meaning it keeps roughly 3.9% of revenue as net income. Based on the latest reported figures.
Does HUAYU Automotive Systems Co Ltd pay a dividend?
HUAYU Automotive Systems Co Ltd currently shows a dividend yield of about 6.01% relative to its recent price (as of Aug 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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